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Customer Driven Evolution in eCommerce
Technology Category
- Functional Applications - Enterprise Resource Planning Systems (ERP)
- Functional Applications - Remote Monitoring & Control Systems
- Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries
- E-Commerce
- Retail
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Fleet Management
- Inventory Management
- Predictive Maintenance
- Supply Chain Visibility
Services
- Software Design & Engineering Services
- System Integration
The Challenge
Wehkamp faced several challenges in its eCommerce operations. Firstly, the expanding fulfillment requirements due to multiple brands and a wide variety of products, including appliances, small electronics, furniture, and clothing, required a flexible fulfillment process. Small items needed high volume pick/pack/ship processes, while larger items like furniture required consolidation, inspection, and advanced pallet builds. Additionally, the 'endless aisle' of products made suppliers' direct shipping critical for on-time delivery. Secondly, Wehkamp had limited visibility with its suppliers, leading to missed opportunities to reduce inventory across the network and limited ability to take action on customer orders in danger of missing delivery windows. Lastly, customers demanded faster delivery, including same-day delivery and white-glove services, which required Wehkamp to cut lead times across the supply chain, not just in transportation.
About The Customer
Wehkamp is the largest e-retailer in the Netherlands, headquartered in Zwolle. The company serves over 1.7 million customers and ships over 7 million packages annually across more than 180,000 products, most within 24 hours. Wehkamp has embraced quick delivery and easy returns as a competitive advantage. To support this, the company invested in the world's largest automated eCommerce distribution center and strengthened its IT infrastructure with a new Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) system. Additionally, Wehkamp implemented MPO's Supply Chain Orchestration solution to ensure consistent fulfillment of customer orders within shorter cycle times by integrating and extending their systems, eCommerce webshops, suppliers, and carriers.
The Solution
Wehkamp implemented MPO's Supply Chain Orchestration solution to address its challenges. The solution seamlessly integrated with Wehkamp's existing ERP, WMS, and world-class distribution center within planned deadlines. It provided full end-to-end visibility and orchestrated real-time execution for all internal, external, and return order flows across their supply chain network and existing systems. MPO's platform connected various eCommerce webshops with WMS, suppliers, and transportation partners to create the most optimized and cost-effective plan for each order. This included dynamically sourcing inventory from across the network and determining the best method of shipment based on SLA cost and speed information. The control tower enabled flexible replanning of any order to ensure on-time and in-full delivery. Additionally, MPO provided complete supplier inventory visibility and collaboration, allowing Wehkamp to have full control of their inventory across the supply chain network. This included detailed fulfillment steps, in-transit status, and proof of delivery. Integration with each supplier and existing facilities enabled Wehkamp to get a complete view of supplier network performance and quickly identify problems and optimize inventory.
Operational Impact
Quantitative Benefit
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